Smartgambler
share investment rules

I shall now endeavour to lead
you around some of the nasty quicksands you will encounter
on any odyssey through the Australian sharemarket.
Let us start with a handy list of trading principles
that will stand you in good stead in most cases.

Don't
buy into companies unless you know the debt level

Don't buy into companies with high debt levels

Give your selection a reasonable amount of time in which to perform

Never allow your bids or offers to be affected by fear of upsetting
a broker or looking stupid

Try to usually buy stocks near historically low
levels in spite of market sentiment

Try and buy in sectors of the market that seem undervalued or out of
favour

Don't overreact to blind panic - Be prepared to sometimes be brave

Never stray too far from the fundamentals - There are lots of stocks
to choose from

When considering fundamentals, believe the bad but double-check the
good

When deciding where to put your eggs, the quality of the basket is more
important than the number of baskets

Be prepared to quit the market altogether sometimes

Don't rely on formulaic rules or systems from
other traders, books, or indeed websites such as this!